TIAA Traditional Lifetime Annuity income increases for 2016

Board’s decision reflects strong capital position

Despite a low interest rate environment in the United States, the TIAA Board of Trustees—for the fourth consecutive year—has approved an increase in total income (guaranteed income plus additional amounts) in 2016 for participants who receive lifetime annuity income from the TIAA Traditional Annuity.1

December 16, 2015 — The TIAA Board of Trustees’ decision reflects the strong capital position of the General Account, which supports the TIAA Traditional guaranteed fixed annuity.* Although participants in the TIAA Traditional Annuity do not invest directly in the General Account portfolio, the investment performance of that portfolio supports the annuity’s minimum guaranteed returns, additional amounts and payout obligations. TIAA’s General Account is the source of the earnings, financial strength and stability that back the TIAA Traditional Annuity.

Below are details for those receiving income from the TIAA Traditional lifetime annuity:

If you’re receiving income from the Standard Payment Method, your monthly payments will increase by about 1% in 2016.2

Participants receiving income under the Graded Payment Method will see their income payments increase by more than 1%.2 The average increase will be about 3.8% in both 2016 and 2017, but your exact increase depends on when your contributions were made to TIAA and when you began to receive income benefits.

The Principal and Interest rate, which is applicable to beneficiaries who want to receive interest only from TIAA Traditional, for 2016 is 3%, which is the same as the rate for 2015.

For more details, participants who are receiving annuity income from TIAA Traditional should consult the Outreach newsletter here .

Stabilizing income

Launched with the founding of TIAA in 1918, the TIAA Traditional Annuity is a guaranteed fixed annuity. Participants may also receive additional amounts, which are determined annually by the Trustees of TIAA and are not guaranteed for future years. Each December, the Board of Trustees of TIAA sets the rates that determine income levels for the following calendar year.

1 The indicated increases for 2016 will be reduced proportionally for those who began receiving income payments in 2015. This information doesn’t apply to income you’re receiving under defined benefit pension plans, principal and interest contracts, the TIAA Transfer Payout Annuity or Interest-Only payments from TIAA Traditional Annuity.

2 Participants who began receiving annuity income during 2015 will receive a reduced increase in 2016.

* All guarantees are based on the claims-paying ability of TIAA. The TIAA Traditional Annuity is issued by TIAA (Teachers Insurance and Annuity Association of America), New York, NY.

Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.

‡Deposit and lending products and services are provided by TIAA Bank®. TIAA Bank is a division of TIAA, FSB, an Equal Housing Lender and Member FDIC. TIAA, FSB NMLS ID: 399805.

The TIAA group of companies does not provide legal or tax advice. Please consult your legal or tax advisor.

TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC , distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each of the foregoing is solely responsible for its own financial condition and contractual obligations.

Teachers Insurance and Annuity Association of America is domiciled in New York, NY, with its principal place of business in New York, NY. Its California Certificate of Authority number is 3092.

TIAA-CREF Life Insurance Company is domiciled in New York, NY, with its principal place of business in New York, NY. Its California Certificate of Authority number is 6992.